January 27, 2026 State lawmakers across the U.S. are moving to hit pause on the rapid expansion of data centers, as energy demand, water use, and rising utility bills turn the infrastructure behind artificial intelligence into a political flashpoint. Georgia is a major part of the fight. In the state, a newly introduced bill could become the first statewide moratorium on new data center construction in the country.
Georgia led the U.S. in data center construction in 2024, particularly around metro Atlanta, even as concerns mounted over electricity rates, water consumption and land use. The proposed legislation would halt new data center projects until March 2027, giving officials time to craft statewide and local rules governing an industry that, according to the bill’s sponsor, “permanently alter[s] the landscape of our state.”
State Representative Ruwa Romman, a Democrat and the bill’s lead sponsor, said the pause is meant to slow growth long enough for regulators and communities to catch up.
The proposal comes just weeks after Georgia’s Public Service Commission approved a plan to add 10 gigawatts of new electricity generation – its largest multi-year expansion ever – driven largely by data center demand and expected to rely heavily on fossil fuels.
Similar proposals surfaced this week in Maryland and Oklahoma, with local governments already acting on their own. At least 10 municipalities in Georgia, including the Atlanta suburb of Roswell, have enacted moratoriums on data center construction. Nationwide, cities and towns in at least 14 states have taken similar steps, according to Tech Policy Press. At the federal level, Senator Bernie Sanders last month floated the idea of a national moratorium.
“What we’re seeing is, as communities are learning more about this aggressive industry’s presence … [they] want to have time to thoroughly investigate all potential harms,” said Seth Gladstone, a spokesperson for Food and Water Watch.
One of the central anxieties is electricity cost. “In the public’s mind, datacenters and utility bills are inextricably linked,” said Charles Hua, founder and executive director of PowerLines. He noted that Georgia’s regulatory structure allows Georgia Power to profit from building new infrastructure, an incentive that has coincided with electricity rates rising by about a third in recent years.
Water use and tax policy have also become sticking points. Republicans in Georgia have introduced measures aimed at shielding consumers from rate hikes and stripping data centers of certain tax breaks. Separately, a Democratic lawmaker has proposed requiring data centers to publicly disclose how much energy and water they consume each year.
Romman’s bill has drawn rare bipartisan support. The proposal also carries clear political stakes. Romman, who is running for governor, said the moratorium would give voters time to weigh in on Public Service Commission races that determine whether Georgia Power’s expansion plans move forward. Georgia is one of 10 states where utility regulators are elected, and the commission recently lost its all-Republican majority for the first time in nearly two decades.
